The fees and charges applied to cash advances
are not hidden fees. By law, card issuers are required to
disclose information about fees and charges associated with
all of their services. This information is typically displayed
on the back of the solicitation form and on the monthly statements.
Card issuers say they have two reasons
to charge the additional fees. Cash transactions cost more
to process than regular credit card purchases, and there's
a higher frequency of default among frequent cash-advance
users. The higher costs and increased delinquency risk are
passed along to the consumer.
Card issuers say they have two reasons
to charge the additional fees. Cash transactions cost more
to process than regular credit card purchases, and there's
a higher frequency of default among frequent
cash-advance
users. The higher costs and increased delinquency risk are
passed along to the consumer.
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